Well, I decided to take the gamble.. I used Partition Magic and it succesfully created a 20 GB partition..
Im just waiting for a copy of XP corp from a mate, then i'll format the 60 gig partition, install XP (again) then copy the files back onto the C partition, then merge the two partitions (C and V) together, and hopefully it'll all be good..
Isnt it great when things work!
Oh, one more thing- when you merge the two partitions together it wont mess up will it? I know the actual merging could mess up, but if it doesnt, the hard disk will be fine and whole again yes? (not too sure how to explain) but basically, ill have a good, clean, working 80 GB hd?
Thanks for all the help everyone!